Bill Text: NY S06538 | 2015-2016 | General Assembly | Amended

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Bill Title: Establishes the "vehicle lienholder accountability act"; requires lienholders to provide notice to the owner of the vehicle when such lienholder assigns his or her security interest and requires such lienholder to execute a release of his or her security interest, within ten days of such assignment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-06-09 - PRINT NUMBER 6538A [S06538 Detail]

Download: New_York-2015-S06538-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         6538--A
                    IN SENATE
                                    January 22, 2016
                                       ___________
        Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Transportation --  commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee
        AN ACT to amend the vehicle and traffic law, in relation to establishing
          the "vehicle lienholder accountability act"; to require lienholders to
          provide notice to the  owner  of  the  vehicle  when  such  lienholder
          assigns his or her security interest
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. This act shall be known and may be cited  as  the  "vehicle
     2  lienholder accountability act".
     3    §  2. Section 2120 of the vehicle and traffic law, as added by chapter
     4  1134 of the laws of 1971, is amended to read as follows:
     5    § 2120. Assignment by lienholder. (a) A lienholder may  assign,  abso-
     6  lutely  or  otherwise,  his or her security interest in the vehicle to a
     7  person other than the owner without affecting the interest of the  owner
     8  or  the  validity of the security interest, [but any] provided that such
     9  lienholder notifies the owner of the  vehicle  of  such  assignment,  in
    10  writing,  and  executes a release of his or her security interest within
    11  ten days of such assignment. Any person without notice of the assignment
    12  is protected in dealing with the lienholder as the holder of the securi-
    13  ty interest and the lienholder remains liable  for  any  obligations  as
    14  lienholder until the assignee is named as lienholder on the certificate.
    15    (b) The assignee may, but need not to perfect the assignment, have the
    16  certificate of title endorsed or issued with the assignee named as lien-
    17  holder,  upon  delivering to the commissioner an assignment by the lien-
    18  holder named in the certificate in the form the commissioner prescribes.
    19  Upon the request of the assignee  the  commissioner  shall  request  the
    20  owner to deliver to the commissioner the certificate of title.
    21    (c) A lienholder who violates the provisions of this section shall pay
    22  a civil penalty not to exceed one thousand dollars.
    23    §  3.  This  act shall take effect on the thirtieth day after it shall
    24  have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07971-02-6